Using data from the Census bureau, WalletHub is reporting that the average American household pays $2,149 annually in property taxes and in the 27 states with vehicle property taxes, an additional $402. To that end, they put together a comprehensive list of all 50 states (and DC) comparing their tax burden using real estate and vehicle property taxes. For real-estate property tax rates, they divided the “median real-estate tax payment” by the “median home price” in each state. Next they used the resulting rates to obtain the dollar amount paid as real-estate tax on a house worth $178,600, the median value for a home in the U.S. as of 2015, according to the Census Bureau. For vehicle property tax rates, they examined data for cities and counties constituting at least 50% of a given state’s population and extrapolated this to the state level using weighted averages based on population size. For each state, we assumed all residents own the same vehicle: a Toyota Camry LE four-door sedan — 2016’s highest-selling car — valued at $23,070, as of February 2017…….very interesting.
“And though property taxes might appear to be a non-issue for the 37 percent of renter households, that couldn’t be further from the truth. We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments.”
Click here to read the full story on WalletHub.com
